Property insurance held not to be equivalent of ‘reserve’

Insurance Matters

By Don R. Sampen

Don R. Sampen is a member of the appellate practice group of Clausen, Miller P.C., where he focuses on appellate, commercial and insurance-related litigation. He also teaches insurance law at Loyola University Chicago School of Law. His column appears twice monthly.

Posted November 7, 2023 11:28 AM

The 1st District Appellate Court recently held that a directors and officers insurer for a condominium association had a duty to defend claims that association directors and their agents failed to obtain adequate insurance coverage for a fire destroying the association’s building. The duty was imposed despite a policy exclusion relating to the failure to maintain adequate reserves. The case is Truck Insurance Exchange v. Ulman, 2023 IL App (1st) 220804 (Oct. 20). The insurer, Truck, was represented by Lewis Brisbois …

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